GRAINS-Corn and soybeans at multi-month highs after USDA cuts supply estimates

CANBERRA, Jan 13 (Reuters) - Chicago corn and soybean futures rose on Monday to multi-month highs after the U.S. government on Friday said production of both crops last year was lower than previously thought and cut its estimate for end-of-season U.S. stocks.

Wheat futures also rose slightly but prices remained near four-year lows amid weak demand and a strong U.S. dollar, which has made U.S. crops less competitive on the global market.

FUNDAMENTALS

The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 0.3% at $4.72 a bushel at 0138 GMT after rising 3.2% on Friday following the U.S. Department of Agriculture report. Prices are at the highest since May.

CBOT soybeans Sv1 climbed 0.4% to $10.29-1/4 a bushel after rising 2.6% on Friday, and are at their highest since November.

Wheat Wv1 was up 0.5% at $5.33-1/4 a bushel.

The USDA said U.S. farmers harvested 14.867 billion bushels of corn in 2024, down from its previous estimate of 15.143 billion and below analysts expectations.

It cut its estimate of U.S. soybean production in 2024 to 4.366 billion bushels from 4.461 billion, also well below what the market had predicted.

The USDA reduced its forecast for 2024-25 season U.S. corn ending stocks to 1.54 billion bushels from 1.738 billion and for U.S. soy ending stocks to 380 million bushels from 470 million, implying tighter supply.

Speculators have turned bullish on CBOT corn but are cautious about soybean prices because they expect massive harvests in South America in the coming months.

Brazilian agribusiness consultancies shared contrasting views on the country's 2024/25 soybean crop, with Safras & Mercado hiking its forecast to 173.71 million tons from 171.78 million tons and Patria AgroNegocios trimming its projection to 167.94 million tons from 170.41 million.

Both predictions still imply that Brazil will produce around 20 million tons more soybeans this year than during the 2023/24 season.

The U.S. dollar remains a headwind to CBOT prices. The greenback on Friday rose to its strongest against a basket of major currencies since November 2022. .DXY FRX/

MARKETS NEWS

Asian shares slipped on Monday while the dollar held near 14-month peaks after an unambiguously strong U.S. payrolls report shoved up bond yields and tested lofty equity valuations just as the earnings season gets under way. MKTS/GLOB

(Reporting by Peter Hobson; Editing by Sonia Cheema)

((peter.hobson@thomsonreuters.com;))